An analysis of the impact of water scarcity on beverages production in Namibia: A case study of Namibia Breweries Limited-beer production, Windhoek, Namibia

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University of Namibia
The aim of the study was to analyse the impact of water scarcity on the production capacity of Namibia Breweries Limited for a period of 5 years (2013 – 2017). This was with a special focus on beer production capacity, sales, revenue and the likely potential threats it poses to the country’s GDP. It intended to explore the long-term sustainable approaches to fight against water scarcity faced by the country in order to place NBL in a competitive sustainable business position during drought events. The study was limited by the sensitive technical in-house information that could not be disclosed to the researcher so as to present a complete picture of the investigated problem. The study used a mixed of exploratory and descriptive research methods. Simple random sampling method was used. Participants were approached to partake in the study and a questionnaire was administered to 134 employees. Quantitative data was analysed using Statistical Package for the Social Sciences whilst qualitative data was analysed using ATLAS.ti software. The major findings of this study were that beer production uses water intensively for processing than other beverages produced by NBL. The company was most hard hit by water shortages that interrupted production during the brewer’s peak season in the 2016 financial year. That shortage led to a decline in revenue, high employee turnover and subsequently affected NBL’s contribution towards the country’s GDP. Hence, the study explored long term sustainable approaches to fight against water scarcity. The water supply options included relocation of the production plant to areas with reduced water risk, drilling of more boreholes and tapping of water from the Kavango River. The study recommended that NBL continuously engage with strategic partners such as Government and the City of Windhoek to find and support solutions to ensure sufficient water supply in order to enhance a favourable business competitive environment. Else, NBL should consider investing in a new packaging line or production plant within the country which is subjected to strategic, cost implications and long-term availability of water.
A thesis submitted in partial fulfilment of the requirements for the Degree of Master of Business Administration (Natural Resources Management)
Water scarcity, Beverages production, Production capacity, Water footprint, Climate change